Yemen's Aden refinery
Yemen's Aden refinery declares force majeure
SINGAPORE, April 16, 2015
Yemen's Aden Refinery Company has declared force majeure on its oil imports and exports, a refinery source told Reuters, as the civil war escalated.
Several cargoes have been deferred from the refinery and suppliers are asking to defer cargoes to later dates as well, the source said, adding that all the ports are now under the control of the Arab coalition naval forces.
"The refinery has declared force majeure to avoid the consequences of not being able to receive the cargoes," the source added, speaking on condition of anonymity as he was not authorised to speak with media.
The company shut its 150,000 barrels per day refinery and suspended its tender process to import oil products into the country due to the crisis.
Aden refinery exports on average about 50,000 tonnes of naphtha every month and jet fuel occasionally. Yemen is reliant on imports of motor fuels gasoline and diesel, importing about 300,000 tonnes every month.
There is no shortage of fuel yet as there are still stocks available in the refinery, though its distribution system is not working properly, the source said without elaborating.
Yemen's liquefied natural gas (LNG) plant said it has declared force majeure due to worsening security and has halted all production at the plant.
Fighting in Yemen is scaring off shippers, with at least four oil and natural gas tankers that were headed to Yemen being diverted recently.
The diesel cargoes that are being diverted from Yemen are being shipped either to Singapore or into storage in Fujairah, in the Middle East, traders said.
"If the rebel forces are not able to control any part of the ports then imports may resume, but otherwise vessel owners will deem it not safe or suitable to discharge cargoes into Yemen," said a trader who supplies fuel to the country.
This is expected to weigh on the Asian gasoil margin, which has already dropped to its lowest this year. -- Reuters
